# Why was I Liquidated?

### What Happens During Liquidation

A liquidation occurs when your position moves against you and your account equity falls below the required **maintenance margin**.

When this happens:

* Your position is automatically closed by the system
* You will see **“Market Liquidation”** in your Trade History
* The position size will be reduced to zero (or partially reduced if partial liquidation applies)
* Your available balance and margin will update accordingly

Liquidations are triggered based on mark price and maintenance margin requirements, not just last traded price.

You can read more about how liquidations work on Pacifica here:\
<https://docs.pacifica.fi/trading-on-pacifica/liquidations>


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